A look at the day ahead in European and global markets from Stella Qiu

Day two of Donald Trump's second presidency culminated in an announcement that OpenAI, SoftBank Group 9984.T and Oracle ORCL.N will form a venture called Stargate and invest $500 billion in AI infrastructure across the United States, though how much of that was already long planned is anyone's guess.

It shares its name with a 1994 sci-fi movie and long-running TV series, in which Stargate is a device providing instantaneous travel between distant planets.

Though its goals are likely more modest than interstellar teleportation, the project could help consolidate America's lead over China in the race to develop AI. Investors are not shy to agree, pushing SoftBank shares up 10% in Asia, helping lift the Nikkei .N225 1.7%. Taiwan stocks .TWII gained 1.3%. .T

The region's under performers were China and Hong Kong, with the former's blue-chip index .CSI300 falling 1% and the latter's Hang Seng .HSI sliding 1.6%.

To be sure, that was in part due to Trump saying a 10% tariff on Chinese goods would commence on Feb. 1.

Still, that's much lower than the 60% pledged during his election campaign. And it remains to be seen if the 10% tariff will happen at all now that Trump needs to negotiate with Beijing for the sale of part of TikTok to either Tesla TSLA.O CEO Elon Musk or Oracle Chairman Larry Ellison.

In Europe, stock markets are set for a slightly higher open, with pan-European STOXX 50 futures STXEc1 up 0.2% and UK FTSE futures FFIc1 rising 0.1%.

European Central Bank President Christine Lagarde will be at the World Economic Forum in Davos, Switzerland. Appearances by other ECB officials include Governing Council member Francois Villeroy de Galhau who will be speaking about interest rates.

Market participants reckon the bank is all but certain to lower its policy interest rate by 25 basis points next week, but the question for many is how low can it go. Predicting the terminal rate won't be easy given inflation is still above the ECB's target but growth headwind is strengthening due to Trump putting friends and foes alike in his America-first firing line.

So far, swaps imply four rate cuts this year to 2%.

Over on Wall Street, Nasdaq futures NQc1 gained 0.7%, lifted by a 14% jump in Netflix, which boasted a record gain in subscribers last quarter.

Still, with Stargate becoming reality in one form or another, there will perhaps be less need to stream sci-fi in the coming years.

Key developments that could influence markets on Wednesday:

• Participation by ECB President Christine Lagarde in a dialogue during the World Economic Forum in Davos

• ECB Governing Council member and Bank of France governor Francois Villeroy de Galhau to speak on Davos panel about interest rates; ECB policymaker Klaas Knot speaks in Davos

• Earnings from Johnson & Johnson, Halliburton

(By Stella Qiu; Editing by Christopher Cushing)